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					Unit Description

While completing this unit, students will learn about how to manage credit in addition to the influence of media on our
perception of the good life and how we use credit. Students will also learn about how to shop for a credit card, the use of
credit by college students, and the significance of their credit score and report.
Click here to view UNIT OUTLINE


Student Learning Objectives

    1.   To understand advantages and disadvantages of credit cards.
    2.   To analyze appropriate and inappropriate uses of credit cards.
    3.   To analyze media strategies that encourages the acquisition and use of credit cards.
    4.   To comparison shop multiple credit cards and select the best value card.
    5.   To understand the use of credit cards by college students.
    6.   To compare different types of credit accounts and their characteristics on a credit report and understand a credit
         score.
    7.   To understand vocabulary and language frequently used in credit card offers, agreements, and statements.




National Standards for Business Education

                  Business Law / Contract Law / Level 3 Performance Expectations:

                                      Describe breach of contract and the remedies available when a contract is breached


                  Business Law / Commercial Paper, Insurance, Secured Transactions, Bankruptcy / Level 3 Performance
                   Expectations:

                                      Explain the contractual relationship between a bank and its customers


                  Communication / Oral Communication / Level 3 Performance Expectations:

                                      Participate in group discussions for problem resolutions
                                      Use proper techniques to make a formal oral presentation
                                      Use technology to enhance oral presentations


                  Communication / Informational Reading / Level 3 Performance Expectations:

                                      Use corporate vocabulary appropriate for entry-level jobs
                                      Interpret information from manuals, computer printouts, and electronic sources
                                      Research information using the Internet and select appropriate materials for reports
                                       and presentations
                                      Identify published misinformation in print and electronic formats


                  Communication / Written Communications / Level 3 Performance Expectations:

                                      Compose appropriate messages for specific audiences
                     Use a variety of references and resources (both printed and electronic) when writing
                      business documents.
                     Prepare formal and informal reports using suitable format and supplementing with
                      appropriate graphics.


   Communication / Social and Business Listening / Level 3 Performance Expectations:

                     Listen discriminately to separate fact from opinion
                     Evaluate media and oral presentations analytically and critically


   Computation / Credit Management / Level 3 Performance Expectations:

                     Compare cash price to installment price in order to make a purchasing decision.
                     Determine periodic payment, interest, and total amount required to pay to amortize a
                      loan.
                     Calculate finance charges on credit card balances and cash advances


   Economics & Personal Finance / Market Structures / Level 3 Performance Expectations:

                     Discuss the major barriers to new firms entering market and how the barriers affect
                      the level of competition in an industry


   Economics & Personal Finance / Buying Goods and Services / Level 3 Performance Expectations:

                     Identify and describe consumer assistance services provided by the public and private
                      organizations (e.g. government, the Better Business Bureau, and manufacturers)
                     Research consumer advocacy groups that address consumer rights and
                      responsibilities and describe how an individual can participate.


   Economics & Personal Finance / Using Credit / Level 3 Performance Expectations:

                     Analyze various sources and types of credit and related costs.
                     Select an appropriate form of credit for a particular buying decision.
                     Compare and contrast the various aspects of credit cards (e.g., APR, grace period,
                      incentive buying, methods of calculating interest, and fees)
                     Explain credit ratings and credit reports and describe they are important to consumers
                     Describe the relationship between a credit rating and the cost of credit
                     Recognize the signals of credit problems
                     Compare and contrast the legal aspects of different forms of credit (e.g., title transfer,
                      responsibility limits, collateral requirements, and co-signing
                     Describe legal and illegal types of credit that carry high interest rates (e.g., payday
                      loans, rent-to-buy agreements, and loan sharking)
                     Identify the components listed on a credit report and explain how that information is
                      used


   Marketing / Consumers and Their Behavior / Level 3 Performance Expectations:

                     Differentiate between rational (cognitive) and emotional (affective)buying motives.


   Marketing / Segmentation and Target Markets / Level 3 Performance Expectations:

                     Define market segmentation and describe how it is used
                                     Identify the tools of market segmentation (e.g. demographics, psychographics, and
                                      geographics)


                  Marketing / Ethical Issues / Level 3 Performance Expectations:

                                     Identify ethical issues and their impact on marketing
                                     Differentiate between ethical and unethical marketing practices


                  Marketing / The Marketing Mix / Branding / Level 3 Performance Expectations:

                                     Identify qualities of an effective brand
                                     Explain the impact of brands on consumer behavior




Family & Consumer Science Standards

Taken from Family and Consumer Sciences Education National Standards, CONSUMER AND FAMILY RESOURCES

2.1 Demonstrate management of individual and family resources, including food, clothing, shelter, healthcare, recreation,
and transportation
2.2 Analyze the relationship of the environment to family and consumer resources
2.3 Analyze policies that support consumer rights and responsibilities
2.4 Evaluate the impact of technology on individual and family resources
2.5 Analyze interrelationship between the economic system and consumer actions
2.6 Demonstrate management of financial resources to meet the goals of individuals and families across the life span



Unit Outline

A. Credit Wisdom

    1.    Managing Money & Credit
    2.    Why Credit is Important
    3.    The Three Cs of Credit
    4.    What's Next? Life After High School
    5.    Learning Boosts Earning
    6.    Your Paycheck
    7.    Where Does All the Money Go?
    8.    Credit Cards €“ The Perceived Great Equalizer
    9.    Who Uses Credit Cards?
    10.   America's Love of Credit
    11.   Personal Savings Rate Declining
    12.   Saving for the Future
    13.   Advantages & Disadvantages of Credit Card
    14.   Use Credit Wisely
    15.   Only Buy What You Can Afford
    16.   Pay More than the Minimum
    17.   Limit the Number of Cards
    18.   Always Pay on Time
    19.   Choose a Low Rate
    20.   What Not to Use Credit For: Payday Loans
    21.   Payday Loans / Check Cashing
    22.   How Do Payday Loans Work?
    23.   WA State Payday Regulations
    24.   Risks of Payday Loans


Lesson order:

    1.    PowerPoint Presentation: 'Credit Wisdom'
    2.    Foundation Activity Lesson Plan: 'Credit Wisdom'



B. The Good Life

    1.    The Good Life
    2.    Credit Card Brands
    3.    My Life, My Card
    4.    Life Takes Visa
    5.    This is Our Card
    6.    Priceless
    7.    Do You Recognize this Ad?
    8.    Is it Priceless? The Power of Compounding Interest
    9.    The True Cost of Paying the Minimum Payment
    10.   The Credit Card Industry
    11.   Market Control
    12.   Affinity Cards


Lesson order:

    1.    PowerPoint Presentation: 'The Good Life'
    2.    Foundation Activity Lesson Plan: 'The Good Life'
    3.    Skill-Building Activity Lesson Plan: 'Priceless'



Additional Resources: Commercial Video Clips
The following urls have commercial video clips posted to their website that complement 'The Good Life' lecture and lesson
plans. You will need a high-speed internet connection to access and play the commercials effectively. (Please let Consumer
Jungle know if these urls change.)

American Express 'My Life. My Card.' Commercials
MasterCard 'Priceless' Commercials
Visa 'Life Takes Visa' Commercials
Chase




C. Shopping for a Credit Card

    1.    Shopping for A Credit Card
    2.    Card Holder Agreement
    3.    Billing Statement
    4.    Annual Percentage Rate (APR)
    5.    Grace Period
    6.    Billing Methods: Average Daily Balance
    7.    Credit Limit
    8.    Default and Universal Default
    9.    Payment Allocation
    10.   Annual Fees on Reward Cards
    11.   Late-Payment Fee
    12.   Over-the-Credit-Limit Fee
    13.   Currency-Exchange Fee
    14.   Cash-Advance Fee & Interest
    15.   Balance-Transfer Fee
    16.   Returned-Check Fee
    17.   Minimum Finance Charge
    18.   What You Don't Need in a Credit Card Offer
    19.   No on Credit Card Insurance
    20.   Theft Insurance
    21.   Life & Disability Insurance
    22.   Unemployment & Property Insurance
    23.   Find a Consumer-Friendly Card
    24.   Top 10 Consumer-Friendly Cards


www.cardweb.com/cardlocator


Lesson order:

    1.    PowerPoint Presentation: 'Shopping for a Credit Card'
    2.    Skill-Building Lesson Plan: 'Shopping for a Credit Card'
    3.    Skill-Building Activity Lesson Plan: 'Find the Fees'



D. Selling Students Credit

    1.    What's Next: Life After High School
    2.    Why Students Use Credit Cards
    3.    More Reasons Why Students Use Credit Cards
    4.    Consumption and Credit
    5.    Long-term Effects of Credit
    6.    College Students' Money Problems
    7.    Credit Card Use by Year
    8.    College on Plastic
    9.    Credit Cards: The 'Other' Drug
    10.   Credit Cards Offers Everywhere
    11.   Mutual Benefit for College & Credit Card Company
    12.   Preparing for Managing Credit on Your Own
    13.   Managing Money in College
    14.   Authorized User
    15.   Co-signer
    16.   Secured Card
    17.   In Memory of Mitzi-Ann Pool
    18.   In Memory of Sean Moyer
    19.   Success Story of Jason Britton
Lesson order:

    1.    PowerPoint Presentation: 'Selling Students Credit'
    2.    Assessment Activity Lesson Plan: 'My Credit Card Plan'
    3.    Assessment Activity Lesson Plan: 'The Credit Safari'



E. Credit Scores and Reports

    1.    Why Credit is Important
    2.    Credit / FICO Score
    3.    The Cost of Borrowing
    4.    What's in Your FICO Scores?
    5.    35% Payment History
    6.    30% Outstanding Balances
    7.    15% Length of Credit History
    8.    10% New Credit
    9.    10% Types of Credit
    10.   How to Improve Your Score
    11.   How to Improve Your Score
    12.   How to Get Your Score
    13.   Duration of Info on Report


Lesson order:

    1.    PowerPoint Presentation: 'Credit Scores and Reports'
    2.    Skill-Building Lesson Plan: 'Checking Your Credit Report'


Final Assessment:

    1.    Assessment Activity Lesson Plan: 'Credit Vocab Quiz'
    2.    Assessment Activity Lesson Plan: 'Credit Concept Quiz'


Additional Recommended Resources
PBS Frontline: Secret History of the Credit Card
60-Minute DVD Video

The average American family today carries 10 credit cards. Credit card debt and personal bankruptcies are now at an all
time high. With no legal limit on the amount of interest or fees that can be charged, credit cards have become the most
profitable sector of the American banking industry: more than $30 billion in profits last year alone. FRONTLINE examines
how the credit card industry became so pervasive, so lucrative, and so powerful.

Affluenza
56-Minute DVD Video
Affluenza is a groundbreaking film that diagnoses a serious social disease - caused by consumerism, commercialism and
rampant materialism - that is having a devastating impact on our families, communities, and the environment. We have more
stuff, but less time, and our quality of life seems to be deteriorating. By using personal stories, expert commentary, hilarious
old film clips, and "uncommercial" breaks to illuminate the nature and extent of the disease, AFFLUENZA has appealed to
widely diverse audiences: from freshmen orientation programs to consumer credit counseling, and from religious
congregations to marketing classes.
Escape From Affluenza
56-Minute DVD Video
This video shows audiences how to declare their independence from the epidemic of rampant consumerism and materialism
ailing Americans and our environment by adopting the practices of simple living. Like AFFLUENZA, this sequel uses expert
commentary, thought-provoking vignettes and humor to show how people can reduce their consumption and simplify their
lives. With stories of real people from Seattle to the Netherlands who have altered their lifestyles and re-discovered the joy
of living, ESCAPE FROM AFFLUENZA offers the antidote to debt, stress, time-pressure and possession-overload.

Washington State Essential Academic Learning Requirements (EALRS)


Communications
1: The student uses listening and observation skills to gain understanding.
1.1 focus attention
1.2 listen and observe to gain and interpret information
1.3 check for understanding by asking questions and paraphrasing




2: The student communicates ideas clearly and effectively.
2.1 communicate clearly to a range of audiences for different purposes
2.2 develop content and ideas
develop a topic or theme; organize thoughts around a clear beginning, middle, and end; use transitional sentences and
phrases to connect related ideas; speak coherently and compellingly
2.3 use effective delivery
adjust speaking strategies for a variety of audiences and purposes by varying tone, pitch, and pace of speech to create
effect and aid communication
2.4 use effective language and style
use language that is grammatically correct, precise, engaging and well-suited to topic, audience, and purpose
2.5 effectively use action, sound, and/or images to support presentations




3: The student uses communication strategies and skills to work effectively with others.
3.1 use language to interact effectively and responsibly with others
3.2 work cooperatively as a member of a group
3.3 seek agreement and solutions through discussion




Economics
1: Students understand the impact of scarcity on their personal lives and on the households,
businesses, governments, and societies in which they are participants.
1.1 Understand that the condition of scarcity requires people to choose among alternatives and bear the consequences of
that choice.
1.2 Understand that the availability and use of resources influences the production of goods and services in the economy.




2: Students understand the essential characteristics of past and present economic systems.
2.1 Recognize that both buyers and sellers participate in voluntary trade because both expect to gain.
2.3 Understand that prices in competitive markets create incentives that influence the choices of buyers and sellers.
Mathematics
4: The student communicates knowledge and understanding in both everyday and mathematical
language.
4.1 Gather information - read, listen, and observe to access and extract mathematical information.
4.2 Organize and interpret information.
4.3 Represent and share information - express and explain mathematical ideas using language and notation in ways
appropriate for audience and purposes.




Reading
1: The student understands and uses different skills and strategies to read.
1.1 Use word recognition skills and strategies to read and comprehend text.
1.2 Use vocabulary (word meaning) strategies to comprehend text.
1.3 Build vocabulary through wide reading.




2: The student understands the meaning of what is read.
2.1 Demonstrate evidence of reading comprehension.
2.3 Expand comprehension by analyzing, interpreting, and synthesizing information and ideas in literary and information
text.




3: The student reads different materials for a variety of purposes.
3.1 Read to learn new information.




Writing
1: The student writes clearly and effectively.
1.1 Develop concept and design. Develop a topic or theme; organize written thoughts with a clear beginning, middle, and
end; use transitional sentences and phrases to connect related ideas; write coherently and effectively.
1.2 Use style appropriate to the audience and purpose. Use voice, word choice, and sentence fluency for intended style and
audience.
1.3 Apply writing conventions. Know and apply correct spelling, grammar, sentence structure, punctuation, and
capitalization.




2: The student writes in a variety of forms for different audiences and purposes.
2.1 Write for different audiences.
2.2 Write for different purposes, such as telling stories, presenting analytical responses to literature, persuading, conveying
technical information, completing a team project, and explaining concepts and procedures.
2.3 Write in a variety of forms, including narratives, journals, poems, essays, stories, research reports, and technical writing.
2.4 Write for career applications.
Vocabulary

Affinity card             Floor
Annual fee                Grace period
APR                       Indexed rate
Authorized user           Installment credit
Average daily balance     Interest
Balance transfer          Introductory or teaser interest rate
Balance-transfer fee      Late-payment Fee
Billing cycle             Minimum payment
Billing statement         Minimum-finance charge
Card holder agreement     Monthly periodic rate
Cash-advance fee          Over-the-credit-limit fee
Co-signer                 Payday loan
Credit bureau             Payment allocation
Credit card insurance     Pre-approved
Credit limit              Returned-check fee
Credit report             Revolving credit
Credit score              Secured card
Currency-exchange fee     Three Cs of credit
Default                   Two-cycle billing
F (Fixed) interest rate   Universal default
Finance charge            V (variable) interest rate

				
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